Answer:
The monthly payment is $93.32 ⇒ answer a
Step-by-step explanation:
* Lets explain how to solve the problem
- The monthly payment is [tex]\frac{P(r)}{1-(1+r)^{-n} }[/tex]
where:
# P is the loan amount
# r is the rate per period in decimal
# n is the number of periods
- The loan is $3000
- We need to find the monthly payment
∴ P = $3000
- The compound monthly interest is 7.5% for 36 months
∵ The period is 12 (1 year = 12 months)
- Divide the rate as a decimal by 12
∴ [tex]r=\frac{7.5}{100(12)}=0.00625[/tex]
∴ r = 0.00625
∴ n = 36
* Lets calculate the monthly payment using the rule above
∵ Monthly payment = [tex]\frac{(3000)(0.00625)}{1-(1+0.00625)^{-36}}=93.32[/tex]
∴ The monthly payment is $93.32
